Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) North Bank awards thirty-year mortgages for the total amount of $100 million. These mortgages need payments of coupons of 10% at quarterly basis. Reply the following problems:

a) What is the quarterly mortgage payment?

b) Create the amortization schedule over 1st year of life of mortgage to find out how much of each payment goes to principle and how much to interest Consider now 30-year Collateralized Mortgage Obligations (CMOs) by using this mortgage pool as collateral. There are 3 tranches with following characteristics:

Class A: Quarterly fixed coupon 9%, class size $20 million.
Class B: Quarterly fixed coupon 10%, class size $30 million.
Class C: Quarterly fixed coupon 11%, class size $50 million

c) Suppose that there are not at any time any type of repayments (e.g. premature payments of the mortgages), what are total promised coupon payments to three classes? prepare down the principal payments to each of three classes for the 1st year?

d) If, over first year, there are quarterly repayments of $5 million on mortgage pool, how are the funds distributed?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915149

Have any Question? 


Related Questions in Basic Finance

1 what factors must one consider when deciding on the

1. What factors must one consider when deciding on the appropriate underlying asset for a hedge? 2. For each of the following hedge termination dates, identify the appropriate contract expiration. Assume the available ex ...

Explain an mncs strategy of diversifying projects

Explain an MNC's strategy of diversifying projects internationally to maintain a low level of overall country risk? Do you think that a full country risk analysis can replace a capital budgeting analysis of a project in ...

Ginger baker inc just paid an annual dividend of 3 a share

Ginger Baker, Inc. just paid an annual dividend of $3 a share and this dividend is expected to grow at a rate of 4% per year for the foreseeable future. If the discount rate for Ginger Baker is 9%, what is the current pr ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "dividends" please respond to the following: • Assess the market and shareholder behaviors when a ...

1 why may researchers not offer potential participants

1. Why may researchers not offer potential participants large incentives (for example, a large amount of money) to participate in research? 2. In general, how much mental or physical risk is permissible in research? 3. D ...

Enter the home page of the careers in business web site

Enter the home page of the Careers in Business Web site (http://www .careers-in-business.com), and page through the finance positions listed and their corresponding salaries. What skill sets or job characteristics lead t ...

1 a present an argument for why translation exposure is

1 .(a) Present an argument for why translation exposure is relevant to an MNC. (b) Present an argument for why translation exposure is not relevant to an MNC. 2 .Walt Disney Inc built the EuroDisney theme park in France ...

Go to the financeyahoocom web site and click on the dow

Go to the finance.yahoo.com Web site and click on the Dow index. Select "Historical Prices" and download the monthly data for the Dow back to 1929. Graph these data using an Excel spreadsheet and comment on any strong pa ...

1 what is behavioral research what are its fundamental

1. What is behavioral research? What are its fundamental goals and limitations? Why is learning about behavioral research important? 2. In what ways is behavioral research similar to and different from research in the na ...

We mentioned in section 542 that it is possible to deduce

We mentioned in Section 5.4.2 that it is possible to deduce, from the LR state on the parsing stack, what grammar symbol is represented by the state. How would we discover this information? Rewrite the following SDT:

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen